04.04.2022
The Central Bank of Cyprus has kept the Countercyclical Buffer (CCyB) for banks and investment firms at 0% of total exposure for the period from April 1, 2022 to June 30, 2022.
According to the CBC press release, the decision was made in accordance with the methodology described in the macroprudential policy of the CBC, and applies to each licensed credit institution and each investment firm providing investment services for operations on its own account or underwriting financial instruments and / or placement of financial instruments based on firm commitments.
Based on the time series ending September 30, 2021, the gap between the credit-to-GDP ratio and its long-term trend (credit-to-GDP gap) based on the broad definition of credit is -61.5, while the gap between credit-to-GDP and its long-term trend (credit-to-GDP gap), based on a narrow (bank) credit definition, is -58.2, CBC said.
“Given that the credit-to-GDP gap is less than 2 percentage points, and taking into account additional indicators that were estimated by the CBC, the buffer benchmark is 0%, and the CBR rate remains at 0%,” CBC added.
